Happy Friday, Brian Manning here with the weekly update, let’s get right to it.
Monday of this week, was a relatively quiet day of just everyone waiting for the election to take place. Tuesday, relatively quiet as well as the elections were taking place. Hopefully you got out there and cast your vote, if you didn’t do early voting. Wednesday, we did start to see markets rally. So, stock markets and bond markets rallied on Wednesday with the potential of a GOP controlled senate. We also got mortgage applications.
So, every Wednesday, the Mortgage Bankers Association gives us feedback of what’s going on with new loan applications and for purchase business on a year-over-year basis new applications were up 26% compared to last year. So, just phenomenal to see a really strong purchase market. This is also in the face of inventory being down 20% on a year-over-year basis. So, you got more purchase applications, less inventory. And for all of my buyers and realtors that are out there, you’re certainly seeing less inventory in the marketplace right now and it’s definitely making for a challenging home-buying process.
Thursday this week, we had a wrapping of a Federal Reserve meeting speech from Jerome Powell, it was really, pretty much a non-event. You probably didn’t want to get very involved with a dramatic speech right now considering what’s happening with everyone being on pins and needles over waiting for vote counts. But really, as expected, Jerome Powell said we’re going to leave rates at historic lows for quite the foreseeable future, so really not anything different there.
Friday this week, today, we get employment. I can’t believe another month has already gone by. The first Friday of every month we get employment report from the BLS, that’s the Bureau of Labor Statistics and expectations from the month of October was at 600,000 new jobs to be created across the country, here in the US. But 638,000 new jobs are created so it’s good to see that more than expected to actually hit the market. We also saw unemployment drop from 7.9% to 6.9%. A little bit misleading, I think, because in these numbers the government has a misclassification that they haven’t done anything with in the reporting of these numbers, so if we had added back that misclassification, we probably would’ve seen unemployment drop from 7.9% to 7.2%. Still good to see, I’m stoked to see unemployment moving in the right direction. Also, for the month of October, we had 2.2 million jobs created. So, good to see some solid job growth here in the US. And then we also had 724,000 people come back into the labor force. So, really good numbers to see there.
Overall, this week we saw mortgage rates improve compared to last week, so it was really good to see mortgage rates come down a little bit. We’ll have to wait and see what happens next week, of course everything right now is just on pins and needles, waiting for voting counts to come through to see what happens with the end results of the presidential election and of course, that’s going to have an impact on markets and also interest rates, moving into next week. So, we’ll have to see how that goes. I
‘m around all weekend, if you have any questions, give me a call. If you’re looking at homes this weekend and you want to run some numbers, you need to revise pre-approvals, call me on my cellphone, text me. I would love to help you in any way I can. Happy Friday, have a great day!